Hi,
My name is Flora, doing BCOM at the Polytechnic of Namibia, neighbour country to South Africa. My question is as follows.

Big ltd and Tiny ltd were incorporated on 30 June 2009 and no changes in their shareholdings have occurred since their incorporation. Huge ltd holds a 40 interest
Big which I turn holds 25% interest in Tiny.

Profit and Loss for the year ended 31 December 2013 is as follows:
Huge Big Tiny
Profit from operation 90 50 30
Taxation (30) (25) (10)
Profit for the year 60 25 20

Consider the following scenarios:
1. Huge(Parent)___40% in___ Big(subsidiary)___25% in__ Tiny(subsidiary)
2. Huge(parent)___40% in___Big(subsidiary)____25% in__Tiny(associate)
3. Hug(parent)____40% in___Big(associate)_____25% in__Tiny(associate)

Huge Ltd Groups accounting policies include:
Associate are accounted for in the group financial statements on the equity method.

Required : Complete the statement of profit or loss in respect of the Huge limited Group for the year ended 31 December 2013 for each of the scenarios which complies with IFRS 10.

Many thanks

Flora

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